Universal Digital Intl Limited on Thursday launched what it is calling the first U.S. dollar stablecoin sanctioned by the United Arab Emirates.
The company said it has become the “first Foreign Payment Token Issuer registered by the Central Bank of the UAE” with the launch of USDU, the name of its USD-backed stablecoin. USDU is now the first token of its kind registered under the UAE’s Payment Token Services Regulation, or PTSR, according to Universal’s statement.
Universal is hoping that its launch will be counted as a milestone in the UAE’s push to develop regulated digital-asset infrastructure, with USDU emerging as a compliant, U.S. dollar-denominated settlement token. According to the company, UAE rules require digital-asset and derivatives transactions be settled in fiat or via a Registered Foreign Payment Token, like USDU.
“USDU sets a new benchmark for regulated digital value,” Universal Senior Executive Officer Juha Viitala said in a statement. “Being the first Foreign Payment Token registered by the UAE Central Bank … gives institutions the clarity and confidence they have been waiting for. It lays the groundwork for a more transparent and efficient digital-asset market in the UAE and beyond.”
The company said its stablecoin is backed 1:1 with U.S. dollar reserves held in financial institutions such as Emirates NBD, Mbank, and Mashreq.
Universal added that it has partnered with Aquanow, which is regulated under Dubai’s Virtual Assets Regulatory Authority, or VARA. The aim is that the partnership will facilitate integrating USDU “into the broader digital-asset ecosystem through Aquanow’s established network of regulated service providers.”
Stablecoin issuer Circle’s UAE plans
In December, USDC issuer Circle secured a financial services permission license from the Abu Dhabi Global Market’s Financial Services Regulatory Authority, allowing it to operate as a money services provider.
Circle said it planned to expand regulated payment and settlement services in the UAE for businesses, developers, and financial institutions. The strategy includes driving adoption of dollar stablecoins and onchain payment infrastructure across the UAE and broader MEA.
USDC is the world’s second-largest stablecoin by market cap.
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